Virginia SWaM Contracting Discrimination Bill (HB 61, 2026)
Virginia SWaM Contracting Discrimination Bill (HB 61, 2026) documents the passage of House Bill 61 in the 2026 Virginia General Assembly session, which establishes the Small SWaM Business Procurement Enhancement Program. Critics allege the bill explicitly discriminates against businesses owned by white men in government contracting by creating set-asides that exclude them from competing for state contracts under $200,000 and allowing agencies to award contracts to women- or minority-owned businesses that bid up to 5% more than competing firms.
Bill Summary
HB 61, officially titled the "Small SWaM Business Procurement Enhancement Program," was introduced on December 30, 2025 by Democratic delegates including Jeion Ward (D-Hampton) and Rodney Willett (D-Henrico).[1]
- Establishes a statewide goal of 42 percent utilization of certified small SWaM (Small, Women-owned, and Minority-owned) businesses in all discretionary spending by executive branch agencies
- Sets a target goal of 50 percent subcontracting to small SWaM businesses when the prime contractor is not a SWaM business
- Requires agencies to increase SWaM utilization by 3% per year until reaching the 42% target
- Creates a set-aside for executive branch agency purchases, requiring that purchases be set aside exclusively for certified small SWaM businesses
Changes from Original to Final Version
The bill was significantly amended as it moved through the legislature:[3]
| Provision | Original Version | Final (Senate Substitute) |
|---|---|---|
| Set-aside threshold | Under $100,000 | Raised to under $200,000 |
| Competition clause | White male-owned businesses could compete if no other bids submitted | Removed entirely |
| 5% price preference | Agencies may award contracts to SWaM firms bidding up to 5% more | Retained |
As commentator Christian Heiens noted: "For discretionary contracts under $200K, state agencies are allowed to bar White men from even being considered at all. And in all other <$200K contracts where White men aren't barred from competing, agencies are still allowed to award them to women or minority-owned businesses that are 5% more expensive."[3]
Legislative History
| Date | Action |
|---|---|
| December 30, 2025 | Introduced in House |
| February 17, 2026 | Passed House |
| March 4, 2026 | Passed Senate (with substitute) |
| March 6, 2026 | Senate substitute agreed to by House (62-Y, 36-N) |
The bill passed on party-line votes, with Democrats in favor and Republicans opposed.[1]
Context
Part of Broader Trifecta Agenda
HB 61 is one of dozens of bills passed by Virginia Democrats after sweeping the 2025 elections and gaining unified control of state government. The contracting bill was part of a legislative package that also included:[4]
- Abolishing mandatory minimums for rape and violent felonies (HB 863)
- Joining the National Popular Vote Interstate Compact (HB 965)
- Automatic felon voting restoration (HB 963)
- Unlimited taxpayer-funded housing grants for government employees
- Banning voter roll cleanup efforts (HB 111)
Legal Questions
The bill raises potential Equal Protection concerns under the Fourteenth Amendment, as it creates race- and sex-based preferences in government contracting. The U.S. Supreme Court has held in Adarand Constructors v. Peña (1995) that racial classifications in government programs are subject to strict scrutiny and must be narrowly tailored to serve a compelling government interest. The federal government under the Trump administration has been actively challenging similar race-based preferences in transportation contracting.[5]